Press Releases
HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE
For Immediate Release
Hopewell Township, NJ
HVCBANK’S EARNINGS AND ASSETS GROWTH CONTINUES RECORD PACE IN 2004
BOARD OF DIRECTORS ANNOUNCES 6 FOR 5 STOCK SPLIT
Hopewell Township, NJ – January 24, 2005 – Hopewell Valley Community Bank (Pink Sheets:HWDY) announced that the institution achieved record earnings and strong growth for the sixth consecutive year during 2004, and that HVCBank’s Board of Directors approved a 6 for 5 stock split payable February 18, 2005, to all shareholders of record as of February 4, 2005.
The Bank’s net income for the year rose 57.3% to $1,163,390 or $.60 per share from the 2003 full year total of $739,475 or $.46 per share. For the fourth quarter, net income increased 47.1% to $308,059 or $.16 per share over the equivalent 2003 mark of $209,407 or $.13 per share. All per share earnings figures in this report are adjusted to reflect the effects of the announced 20% stock split.
The major factor driving increased profitability during 2004 was a strong increase in net interest income that jumped 31.1% to $5,172,088 as compared to the 2003 mark of $3,945,428. Total income also set a company record, ending 2004 at $8,376,621, a 22% increase over 2003. Expenses rose by a smaller margin with total operating expenses moving up only 17% for the year.
HVCBank’s year-end 2004 total assets rose to $163,356,683, a 22.4% increase over the December, 2003, year-end figure of $133,419,404. Total deposits increased 23.9%, jumping to $148,092,568 at year-end, rising from $119,517,358 at the conclusion of 2003. Loan growth surged, with total loans rising 32.7% ending 2004 at $121,702,828.
Shareholder’s equity increased year-over-year 8.6%, ending 2004 at $14,635,750 as compared to the 2003 year-end total of $13,473,983. This increase is primarily attributable to net income earned during 2004.
HVCBank’s Chairman, Patrick L Ryan, and President/CEO, James Hyman, observed that: “2004 proved to be another great year for Hopewell Valley Community Bank. We successfully relocated our former Pennytown office to our new County Line office at the intersection of Routes 518 and 31 in Hopewell and have seen steadily rising volumes of deposits and loan business from the new location. Additionally, growth in our Hamilton Office increased significantly in 2004 providing heightened momentum for success in that lucrative market. The Cranbury Loan Production Office that opened in the fourth quarter is already creating a name for the Bank in the Route 130 corridor. The fourth quarter roll out of the HVC Funding Division has greatly improved our volume of residential and commercial mortgages for the Bank’s balance sheet as well as increased fee income from the sale of such products into the secondary market. The success of these efforts and the subsequent increase in book value and earnings of our stock has allowed us, therefore, to prudently execute this 6 for 5 stock split which should provide additional liquidity for our shares.”
| Twelve Month Unaudited Results | December 31, 2004 | December 31, 2003 | % Change |
| Total Interest Income | $7,465,317 | $5,962,079 | 23% |
| Total Noninterest Income | $911,304 | $896,072 | 1.7% |
| Total Income | $8,376,621 | $6,858,151 | 22.1% |
| Interest Expense | ($2,293,229) | ($2,016,651) | 13.7% |
| Net Interest Income | $5,172,088 | $3,945,428 | 31.1% |
| Total Operating Expense | ($4,455,912) | ($3,800,665) | 17.2% |
| Net Income Before Taxes | $1,627,480 | $1,040,835 | 56.4% |
| Taxes | $464,090 | $301,360 | 54% |
| Net Income | $1,163,390 | $739,475 | 57.3% |
| Earnings Per Share | $.60 | $.46 | 30.4% |
| Total Assets | 163,356,683 | 133,419,404 | 22.4% |
| Total Equity | $14,635,750 | $13,473,983 | 8.6% |
Hopewell Valley Community Bank is a locally owned and
managed full service, FDIC insured commercial bank. Founded in 1998, HVCB
provides a friendly, personalized banking experience for residents and small
business owners through its three branches in Mercer County and through its
fully interactive website at www.hvcbonline.com.
For further information, please contact:
James Hyman, President & CEO
Hopewell Valley Community Bank
609 466-2900
www.hvcbonline.com
jhyman@hvcbonline.com